Chuck Jaffe in an article on MarketWatch argues that as a smart investor you need to learn the skill of ignoring the news. You can read the headlines but never trade on them. Always think long term. News is what creates the volatility in the market short term but long term this volatility gets factored out.
However this can only work if you are a long term investor. And in case if you are a day trader or a swing trader trying to capitalize on the market volatility, you need to take the news into account. News is what moves the market short term and as a day trader you are trying to capitalize on it. But you will see that the impact of news is short term. Most of the trends started by the news last for a few days to a few weeks. Long term only fundamentals work. News gets factored out.